Most Native Americans Pay Taxes
Native Americans have to pay federal income taxes, the same as any other American family. The confusion may lie in the different statuses of Native American tribes, which are governments and, as such, not taxable by states or the federal government.
In regards to state taxes, Native Americans do not pay taxes on income earned on reservations or state sales taxes for goods purchased on reservations. Only 22% of Native Americans in the U.S. live on reservations, and the ones who live and work off reservations have to pay federal and state taxes. Also, because tribes are governments, they have the right to tax anyone living on their reservations, member or not.